A research report released on Aug. 25 said widespread adoption of tokenized deposits could materially reduce the long-term lending capacity of U.S. banks, with the estimated impact reaching about $580 billion. The report argues that tokenized deposits allow funds to move on a near real-time basis, which may weaken deposit stability across the banking system. That shift, in turn, could affect banks' ability to extend long-term credit. The potential effect has drawn attention from regulators and the banking industry, which are increasingly watching the risks tied to emerging financial technologies. The item was cited by Techub News and attributed to Crypto.news.
Techub News reported that a research paper released on Aug. 25 said widespread adoption of tokenized deposits could significantly reduce the long-term lending capacity of U.S. banks, with the estimated decline reaching about $580 billion.
The report said tokenized deposits enable funds to move on a near real-time basis. That could reduce deposit stability within the banking system and affect banks' ability to provide long-term credit.
It added that the potential impact has already drawn attention from regulators and the banking industry over risks linked to emerging financial technology. The item cited Crypto.news as the source.
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